Clarification and Modification of Notice 2013–29 and Notice 2013–60. This notice clarifies and modifies Notice 2013–29 and Notice 2013–60 regarding the application of the Physical Work Test, the ability to transfer a facility after construction has begun, and modifies the application of the Safe Harbor for certain facilities with respect to which a taxpayer paid or incurred less than five percent, but at least three percent, of the total cost of the facility before January 1, 2014.

This revenue procedure provides the exclusive procedures for taxpayers to obtain the automatic consent of the Commissioner to change a method of accounting under the retail inventory method to comply with final regulations under § 471 of the Code. The final regulations (TD 9688) were published in the Federal Register on August 15, 2014.

This document contains final regulations that provide comprehensive guidance for the award program authorized under Internal Revenue Code section 7623. These regulations are effective on August 12, 2014.

Final regulations provide rules under section 471 of the Code relating to the retail inventory method of accounting. The final regulations clarify the computation of ending inventory values under the retail inventory method and provide special rules for vendor allowances required to reduce only cost of goods sold and for margin protection payments. These regulations are effective on August 15, 2014.

Final regulations regarding dispositions of property subject to depreciation under section 168 of the Internal Revenue Code (Modified Accelerated Cost Recovery System (MACRS) property). The final regulations also amend the general asset account regulations under § 1.168(i)–1 and the accounting for MACRS property regulations under § 1.168(i)–7. The final regulations provide rules for determining gain or loss upon the disposition of MACRS property, determining the asset disposed of, and accounting for partial dispositions of MACRS property. The final regulations also remove temporary regulations under section 168 regarding general asset accounts and disposition of MACRS property. These regulations are effective on August 18, 2014.

This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for July 2014 used under § 417(e)(3)(D), the 24-month average segment rates applicable for August 2014, and the 30-year Treasury rates. These rates reflect the application of § 430(h)(2)(C)(iv), which was added by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP-21) and amended by section 2003 of the Highway and Transportation Funding Act of 2014 (HATFA).

Section 9010 of the Patient Protection and Affordable Care Act (PPACA), Public Law 111–148 (124 Stat. 119 (2010)), as amended by § 10905 of PPACA, and as further amended by § 1406 of the Health Care and Education Reconciliation Act of 2010, Public Law 111–152 (124 Stat. 1029 (2010)) imposes an annual fee on certain health insurance providers. Notice 2014–47 clarifies how the Internal Revenue Service and the Department of Treasury will administer the definition of a “covered entity” for the 2014 fee year. Entities that meet the requirements of an exclusion under § 9010(c)(2) to the definition of a covered entity for the entire 2013 data year or for the entire 2014 fee year, will not be treated as covered entities for purposes of the 2014 fee year. Additionally, a controlled group should not report in 2014 the net premiums written in 2013 of a controlled group member who would not qualify as a covered entity in the 2014 fee year if it were a stand-alone entity. The notice applies only to the 2014 fee year.